By Douglas Peebles, Robert Schwartz
From steel to engines to whole cars, tariffs are shifting the playing field for automakers. Our credit analysis suggests there are no winners in this war: consumers should expect higher sticker prices, companies lower earnings, and investors more volatility.
As trade tensions build, automakers around the world are finding themselves in the crosshairs. US tariffs have already raised the costs of steel and other materials. Now the Trump administration is considering tariffs on imported cars and parts, which the president has suggested could be as high as 25%.